US Corporate Lobbyists Continue Tax Cut Calls Despite Public Disapproval

by Leroy Baker, Tax-News.com, New York

29 November 2001

Despite widespread condemnation of the aggressive lobbying taking place within the US corporate sector demands for tax breaks, subsidies, and federal assistance are still coming thick and fast, and the many and varied industries that are jumping on the bandwagon in the run-up to the approval of the economic stimulus program are displaying more imagination than ever before.

According to Jim Albertine, President of the American League of Lobbyists, industry pressure groups do not feel that they are profiteering by promoting pre-September 11th demands as essential to national security, but argue that the timing is right: 'You have to get the attention of lawmakers to get something done, and right now their attention is focused on terrorism and national security,' he explained to the Associated Press earlier this week. He added that lobbyists have been 'very imaginative in their use of the events of 9-11 to advance their particular projects.

In addition to demands from investment groups and Republicans for corporate tax breaks and capital gains tax cuts, which they argue will strengthen the economy by stimulating investment, pressure groups from the high-tech sector, farmers unions, and energy producers have all attempted to get in on the act.

According to the Associated Press report, the American Traffic Safety Services Association has requested more money for federal highway safety, arguing that in the event of another crisis improved roads would help motorists flee cities faster, the American Farm Bureau Federation has pleaded for subsidies in order to maintain the national food supply, energy producers have asked for tax breaks and consideration in order to make the US less reliant on Middle Eastern oil and gas, and electricity firms have begged for rule changes in order to protect the national power supply.

In an article earlier in the month, we revealed that although the average American citizen has sympathy for the demands of the genuinely stricken industries, such as the airlines, patience is wearing thin with the continued and somewhat undignified attempts of certain sectors to use the tragic events of September 11th as a springboard.

This can be seen all too clearly in a recent New York Times article, in which Professor Richard Sylla, a professor of business history at NYU's Stern School of Business, pointed out that lobbying for tax breaks in times of crisis is a very modern phenomenon: 'Taxes went up in World War II and nobody seemed to object. There was more of a spirit of cooperation. It was more "What's in the national interest?" than "Can you do something for us?"' the professor observed.

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